BALUFORGE
Small CapBalu Forge Industries Limited
Auto
Balu Forge Industries manufactures precision machined and forged components for diverse end-markets including automotive, industrial machinery, power generation, defence, and railways. It supplies precision-engineered components to 25 global OEMs across 80 countries, operating integrated facilities in India and the UAE.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Investable fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 0/100Rev -2% YoY · margin compression · PAT +5% YoY · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹264 Cr | -2.2% | -15.1% |
| EBITDA | ₹60 Cr | -20.0% | -29.4% |
| Operating margin | 23.0% | -500 bps | -400 bps |
| PAT | ₹66 Cr | +4.8% | -7.0% |
| PAT margin | 25.0% | +167 bps | +217 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
FY26 revenue grew 19.9% YoY to Rs 11,074 Mn, with PAT up 27.0%. Q4 FY26 revenue declined 2.3% YoY and 15.3% QoQ due to Middle East geopolitical issues, impacting volumes and elevating working capital.
Q4 FY26 results show sequential moderation in volumes and elevated working capital due to geopolitical disruptions. While full-year performance was strong and high-value segments are growing, the short-term operational impact and working capital strain put the thesis under stress. Long-term growth drivers like defence orders and capacity expansion remain intact.
Order Book by End-user Industries
Latest issuer-disclosed distribution across 6 reported categories.
High-Value Engineering Segments
Expanding into defence, aerospace, railways, energy, and industrial equipment with complex precision components. Defence, Aerospace, Railways now ~50% of order book.
Capacity Expansion
Developing a 46-acre facility at Hattargi/Belagavi to raise total machining capacity to over 80,000+ MTPA and forging capacity to 1,50,000+ MTPA by FY27.
Aerospace Entry
Secured maiden aerospace order from Alpha Aircraft Systems Inc., USA, marking entry into the global aerospace supply chain.
Large Calibre Ammunition
Entered a 5-year MOU for the supply of large calibre ammunition from the greenfield manufacturing campus in Belgaum.
Forging Capacity Expansion
Forging capacity at Hattargi, Hukkeri is increasing to 1,50,000+ MTPA from 100,000+ MTPA.
Machining Capacity Expansion
Belagavi facility will raise total machining capacity to over 80,000+ MTPA by FY27.
Empty Shell Production Line
Dedicated forging and machining line for empty shell production (capacity: 360,000 shells p.a.) has been commercialized.
Gross Block Projection
By FY27, the gross block is projected to reach ₹750–800 crore, driven by expansion of machining and forging lines.
High-Value Product Mix
Increasing contribution of high value engineering segments helped moderate the impact on margins despite geopolitical developments.
Global Defence Partnerships
Strengthened global footprint through induction into the NATO supply chain, establishing a strategic international defense partnership.
Government Support
Growth strategy aligns with the Government’s “Make in India” vision.
Geopolitical Developments
Geopolitical developments in the Middle East disrupted global logistics and temporarily impacted India-UAE operations in Q4 FY26.
Input Price Volatility
Ongoing volatility in input prices, though the company aims to pass on material increases to customers.
Geopolitical Instability
Geopolitical developments in the Middle East led to sequential decline in volumes and temporary increase in inventory and trade receivables in Q4 FY26.
Working Capital Management
Working capital levels remained elevated during Q4 FY26 due to increased inventory and trade receivables.
Income Tax Search Outcome
Income Tax Department conducted a search in Q4 FY26; company awaits written communication on the outcome, though management foresees no material adverse impact.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY comparison is essential for assessing overall annual growth and Q4 performance against the previous year. QoQ comparison is critical for understanding sequential momentum, particularly the impact of geopolitical events on Q4 volumes and working capital.
Revenue from Operations
FY26: Rs 11,074 Mn (+19.9% YoY). Q4 FY26: Rs 2,636 Mn (-2.3% YoY, -15.3% QoQ).
EBITDA Margin
FY26: 27.0%. Q4 FY26: 22.7% (vs 27.8% Q4 FY25, 27.2% Q3 FY26).
PAT Margin
FY26: 22.7%. Q4 FY26: 22.9% (vs 22.9% Q4 FY25, 22.5% Q3 FY26).
Order Book Diversification
Defence, Aerospace, and Railways segments now account for approximately 50% of the total order book.
Strategic Focus
Management remains focused on strengthening precision engineering, defence, and aerospace manufacturing capabilities.
Investment Strategy
Continued investments in advanced manufacturing technologies and capacity expansion are planned for FY27.
Funding Growth
All expansion programs are being executed within a low-leverage framework, funded through internal accruals, preference share issues, and warrants.
Long-term Growth
Aims to drive sustainable, innovation-led growth aligned with the Government’s “Make in India” vision and deliver long-term shareholder value.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| QoQ Volume Recovery | Q4 FY26 saw sequential moderation in volumes due to geopolitical issues. | Recovery in sequential volumes in Q1 FY27 and subsequent quarters, indicating resolution of geopolitical disruptions. |
| Working Capital Days | Inventory days at 140 and Trade Receivable days at 124 for FY26, elevated in Q4. | Improvement in inventory and trade receivable days, reflecting better working capital management and normalization of operations. |
| Order Book Conversion | Defence, Aerospace, and Railways now account for ~50% of the order book. | Timely execution and revenue realization from these high-value segments, validating the strategic shift. |
| Capacity Ramp-up & Utilization | Belagavi facility to raise total machining capacity to 80,000+ MTPA by FY27; empty shell line commercialized. | Progress on capacity ramp-up, utilization rates of new facilities, and their contribution to revenue and margins. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
46NeutralSMA20 -6.1% / mo
Technical chart
BALUFORGEdaily · 1Y-26.6%Technical trend read
Bearish setupTrend is weak — long-term trend unclear. RSI 40.
- SMA20 falling (~6.7% over last month) — short-term momentum negative.
- RSI(14) at 40 — falling, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 33% off 52W high · 32% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
UNDERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Piotroski is strong at 8/9.
- Fair-value margin of safety is positive at 36.0%.
- Growth contributes 23/25 to the score.
Main drags
- Cash flow is weaker at 2/10; verify the latest quarterly trend.
- Valuation is weaker at 8/30; verify the latest quarterly trend.
- Quality is weaker at 11/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +1 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 87th percentile of the scored universe and 74th percentile within Auto. Main check: cash conversion is weak at 55/100.
High Trust Lite: Promoter pledge is zero.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Auto: 74th pctile, median 71 · Small: 90th pctile, median 65
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸Debt/equity is 0.07.
- ▸ROCE is 31.3%.
- ▸8/8 recent quarters had positive YoY revenue growth.
Trust risks
- ▸No major Trust Lite risk flags.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 21.50
- P/B
- 3.50
- EV/EBITDA
- 18.45
- Market Cap
- 5569.00Cr
Profitability
- ROE
- 19.60%
- ROCE
- 22.70%
- ROA
- 13.99%
- Dividend Y
- 0.03%
Growth (CAGR)
- Revenue 5Y
- 51.00%
- EPS 5Y
- 102.00%
- Revenue 3Y
- 50.00%
- EPS 3Y
- 88.00%
Balance Sheet
- Debt/Equity
- 0.10
- Interest Coverage
- 18.75×
- Altman Z
- 8.56
- Book Value
- 131.00
Cash Flow
- FCF Yield
- —
- FCF Positive Y
- 2/5
- OCF
- 32.00 Cr
- EPS TTM
- 21.33
Shareholding
- Promoter Hold
- 54.39%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 26%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Auto — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.